Building the bridge between crypto and coffee shops: A chat with Mesh’s Bam Azizi

crypto bam azizi

The Tearsheet podcast often explores the intersection of financial services and technology. What makes this exploration unique is its focus on emerging trends, like the connection of the Web3 technologies of crypto and blockchain with the traditional finance ecosystem. Today, Bam Azizi, the co-founder and CEO of Mesh, joins me on the podcast.

Founded in 2020, Mesh is an embedded financial platform designed to simplify crypto transactions by enabling real-time connectivity and asset transfers. Previously, Azizi co-founded the cybersecurity company, No Password. Azizi has a strong background in robotics and software engineering.

He is now leading Mesh towards a future focused on tokenized assets.“Everything will be tokenized because it’s easier to transfer and build,” says Azizi. He emphasizes the importance of addressing market gaps. Mesh integrates exchanges and enables crypto payments.

The Evolution of Crypto & Embedded Finance

Embedded finance has emerged as a pivotal market structure in fintech. It allows financial services to be seamlessly integrated into non-financial platforms. Azizi sees Mesh as a connection aggregator, not a data aggregator. This sets it apart from competitors like Plaid. “Plaid is the right solution for traditional assets,” Azizi explains. “We are the right solution for the crypto industry.” Traditional platforms focus on aggregating banking data — Mesh enables transactional capabilities. This includes transferring assets between exchanges and using crypto for payments.

Crypto Payments and Practical Use Cases

Mesh’s offerings have evolved from enabling cryptocurrency deposits to powering crypto payments. Azizi describes the creation of MeshPay, which is a comprehensive solution that addresses the unique challenges of crypto payments within a commercial setting. “Imagine paying at a coffee shop with crypto through Apple Pay,” says Azizi. This vision stems from a real-world use case where a small business embedded Mesh to accept crypto as a payment method. For regions grappling with hyperinflation, functionality like this offers real practical advantages.

Tokenized Assets: The Future of Finance

Azizi strongly advocates adopting tokenized assets. He predicts that “everything will be tokenized” in the coming decade. Tokenization can simplify asset transfers, improving accessibility and mirroring the digitization wave of the past two decades. Azizi believes traditional processes are inefficient. He points to asset transfers between brokerage accounts as an example. These processes are often cumbersome. Tokenized systems promise to end these inefficiencies. They pave the way for streamlined financial operations.

Challenges and Opportunities with Regulation

Discussing regulatory frameworks, Azizi underscores the importance of clarity. “Healthy regulation benefits everyone,” he notes. Azizi emphasizes how clear guidelines could boost cryptocurrency adoption and innovation. Mesh’s non-custodial model aligns with the crypto community’s ethos of decentralization. It resonates with users who prioritize privacy and control over their assets.

The Big Ideas

  1. Mesh bridges data aggregation with actionable connections. “We’re not just aggregating data; we’re enabling transactions,” Azizi explains. Mesh’s approach bridges the gap between traditional finance and the burgeoning crypto ecosystem.
  2. Embedded finance evolves alongside tokenized assets. Azizi predicts a shift where traditional and tokenized assets coexist. “Embedded finance must mirror this hybrid future,” he says.
  3. Mesh enables seamless crypto payments for everyday transactions. Azizi highlights MeshPay’s potential. He says, “Users can connect their Coinbase account and pay for things with crypto, just like using a credit card.”
  4. Clear regulations could unlock growth in crypto adoption. “We need clear regulations,” Azizi states. He believes that regulatory clarity will drive adoption, particularly among traditional financial institutions.
  5. Mesh focuses on privacy-focused, non-custodial solutions for crypto users. Reflecting on his experience with No Password, Azizi emphasizes, “We don’t store any user data.” This approach aligns with the decentralized ethos of crypto.

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Public Blockchain’s Promise: EY’s Paul Brody on tokenization, enterprise adoption, and privacy

Tokenization paul brody

As blockchain technology seeps slowly into the traditional financial services ecosystem, it is offering new opportunities through tokenization and decentralized finance (DeFi). Today’s episode of the Tearsheet podcast hosts Paul Brody, EY’s Global Blockchain Leader who shares his expertise on these developments. Paul is focusing on the promise of public blockchain and the challenges surrounding privacy. He is also the Chairman of the Enterprise Ethereum Alliance. Brody’s unique roles provide a distinctive perspective on blockchain adoption in enterprises.

Reflecting on his decade at EY, Brody explains, “One of the things I’m most proud of is how little our strategy has evolved. We’ve consistently believed in the value proposition of public blockchains.” EY’s blockchain initiatives center around asset tokenization. It focuses on privacy-focused solutions and enabling enterprises to scale blockchain use effectively.

Addressing misconceptions, Brody highlights a critical distinction. He says, “A lot of people don’t realize private blockchains have no privacy. They’re centralized systems without the benefits of a decentralized ledger.” This belief underpins EY’s commitment to public blockchains, which he argues are the only viable path for enterprises.  

Understanding Tokenization and Its Role in Financial Services  

As the conversion of real-world assets into digital tokens. It is emerging as a key enabler in financial services. According to Brody, “At a global level, I believe all B2B transactions are suitable for blockchains.” Tokenization allows enterprises to tokenize assets such as real estate, and bonds. It enables seamless transactions through smart contracts.

Brody identifies privacy as a major hurdle to enterprise adoption. “Enterprises need privacy technology to protect sensitive business information. This is essential for them to use public chains,” he explains. EY is investing heavily in privacy-enhancing technologies. It ensures transactions remain verifiable while safeguarding proprietary data.

The Debate: Public Blockchain vs. Private Blockchain

When discussing blockchain adoption, Brody stresses the limitations of private blockchains. He says, “Private blockchains defeat the purpose of decentralization.” He notes that private systems often lack transparency and security. These are the defining advantages of blockchain technology. Public blockchains, combined with privacy layers, offer essential infrastructure for enterprises. This enables blockchain adoption at scale. “Privacy infrastructure on a public chain allows enterprises to securely share data with partners. It retains control over what remains private while doing so,” he adds.

How Decentralized Finance and Stablecoins Are Shaping the Industry

Decentralized finance is another area undergoing significant evolution. Brody observes that lower interest rates could reignite innovation. It will make tools like yield-bearing stablecoins and staking protocols more attractive. “When interest rates drop, the extra yield offered by DeFi tools becomes much more appealing,” he notes.  

Stablecoins, especially those pegged to fiat currencies, are a cornerstone of this ecosystem. Brody envisions enterprises seamlessly integrating stablecoins into their operations. He also foresees the use of other digital assets becoming routine. This will enhance efficiency and reduce costs.

Looking Ahead: Blockchain in Financial Services  

Brody discussed how regulatory clarity could speed up blockchain adoption. This would be particularly beneficial for large financial institutions. He predicts, “The floodgates will open once clear rules are established.” Some banks have started exploring blockchain-based solutions. But, widespread adoption depends on a clear regulatory framework.

For enterprises considering blockchain, Brody emphasizes starting with customer needs. “The nightmare for banks is when their most valuable customers open accounts at crypto exchanges. This leads them to leave the bank’s ecosystem,” he warns.

The Big Ideas

1. Tokenization is transforming B2B transactions. “Every transaction comes down to tokenizing money, tokenizing the stuff. And automating the terms via smart contracts,” says Brody.

2. Public blockchains offer a compelling value proposition. “Private blockchains have no privacy,” Brody explains. He emphasizes the importance of decentralized, public systems for scalability and security.  

3. Privacy is essential for enterprise adoption. Brody highlights the need for privacy layers. He states, “Enterprises require privacy to share sensitive information securely on public blockchains.”

4. DeFi innovation is influenced by market conditions. Brody observes, “Lower interest rates make decentralized finance tools much more appealing. They do so by doubling potential returns compared to traditional options.”

5. Regulatory clarity will drive enterprise adoption. “The true race begins once the rules are clear. Until then, enterprises will hesitate to commit fully to blockchain-based solutions,” Brody asserts.  

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Can cryptocurrency and blockchain drive fintech innovation? Stanford’s Lisa Nestor weighs in

cryptocurrency lisa nestor

Could cryptocurrency be the key to bridging financial gaps? Can it create a more inclusive global economy?

Digital assets like stablecoins and blockchain technology are reshaping how we think about money. Their potential to level the financial playing field is becoming clearer. In today’s episode of the Tearsheet podcast, I sit down with Lisa Nestor, Research Director at the Stanford Future of Digital Currency Initiative to discuss how fintech innovation is paving the way for broader financial inclusion.

Lisa’s expertise spans blockchain technology, cryptocurrency, and fintech innovation. This makes her a leading voice in understanding the intersection of these fields.

Lisa’s career reflects a deep commitment to financial inclusion. 

“When I started researching Stellar,” Lisa shares. “It brought together what I had seen [and demonstrated] the power of providing open-source financial infrastructure.” This passion for creating accessible financial systems has guided her work. It also included her current research on stablecoins and digital dollar adoption.  

Lisa explains how cryptocurrency, stablecoins, and blockchain can make finance fairer. Her insights show how these innovations affect cross-border payments and financial inclusion. She also discusses their role in the evolving fintech landscape.

Cryptocurrency and Financial Inclusion  

Cryptocurrency has the potential to address the uneven access to financial services worldwide. Blockchain technology allows people in underserved regions to access digital wallets and stablecoins.

With new financial tools, more people can save, transact, and even earn. “Access to financial services is not an even playing field,” Lisa notes. “Distributed ledger technology can help level that field. It can do so by providing accessible and stable financial options.”

Stablecoins: Beyond Trading to Real-World Impact

Stablecoins are already impacting cross-border payments and savings in regions with unstable economies. Lisa highlights Argentina as a case study. She says, “Argentina’s economic situation has created a huge demand for digital dollars, with stablecoins playing a crucial role in hedging inflation and providing financial security.”

Digital Dollar Economy and Cross-Border Payments 

Lisa emphasizes how digital dollars simplify cross-border payments, especially for regions with limited traditional banking infrastructure. “Being able to hold a stablecoin in a digital wallet and earning some yield on it is a small but significant step towards democratizing finance,” she says.

Tokenization of Real-World Assets

Another emerging trend Lisa identifies is the tokenization of real-world assets (RWA). Blockchain makes traditionally illiquid assets, like real estate and art, more liquid.

This opens up global markets. “This approach improves liquidity. It makes these assets move seamlessly across the globe,” Lisa explains.

Fintech Trends in Digital Asset Adoption  

Lisa explores CBDCs (Central Bank Digital Currencies) and private stablecoins. She looks at how governments and businesses are adopting digital assets. She also discusses the opportunities and challenges they face. “Most central banks are researching how to launch CBDCs without negatively impacting their banking industry,” she says. Lisa highlights a cautious yet growing interest in these tools.

The Big Ideas

1. Open financial infrastructure creates a global ledger accessible to all. “The idea is to create a ledger that every financial institution in the world can operate on but can’t buy. It is open and available to everyone.”

2. Stablecoins provide financial security in unstable economies. “In emerging markets like Argentina, stablecoins offer a way to hedge inflation. They secure savings amidst economic instability.”

3. Tokenizing real-world assets improves liquidity and global accessibility. “Tokenizing existing assets brings improved liquidity and global accessibility to traditionally illiquid markets.”

4. Governments explore CBDCs to complement existing banking systems. “Central banks are focused on introducing CBDCs that complement. Rather than compete with, existing banking systems.”  

5. Digital dollars empower individuals in the gig economy. “More individuals are earning in digital dollars through online work. This is creating new economic opportunities without physical migration.”  

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From Bitcoin to Tokenized Assets: A roadmap for Web3 in finance with Rumi Morales

bitcoin rumi morales

Is the promise of Web3 in finance finally coming to fruition, or are we still in the early stages of a long journey from Bitcoin to tokenized assets?

As the cryptocurrency and Bitcoin market evolves, Bitcoin’s price swings draw attention. Traditional banks explore blockchain cautiously. People are curious about the current stage of Web3 development. The question remains: where are we on the timeline?

Today’s episode of the Tearsheet podcast features Rumi Morales. She is a partner and board member at Outlier Ventures. She discusses the current state and future potential of Web3 in the financial sector. Morales brings extensive experience from her roles at CME Group, Digital Currency Group, and Goldman Sachs.

Morales reflects on her decade-long journey in the cryptocurrency and Bitcoin space. She shares, “I would have answered this question a lot better 10 years ago when I first got into the space. I think I was full of hope and excitement and a lot of ambition.” Her perspective offers a nuanced view of the industry’s progress. She recognizes the progress and challenges of Web3 technologies in achieving mainstream adoption.

As the discussion unfolds, Morales provides valuable insights into the current state of Web3. She discusses the role of decentralization. She elaborates on the potential for blockchain technology to reshape traditional financial services. Her position bridges traditional finance and emerging technologies. This gives readers a well-rounded view of the future of digital assets and decentralized systems.

The Current State of Web3 in Finance

Morales starts by discussing the slower-than-expected adoption of Web3 in finance. She notes, “Reality has shown me that today, where are we? For those that seem to be succeeding, they are with the broader marketplace, they’re succeeding in a rather traditional way.”

This observation highlights a key challenge in the Web3 space. Such as the tension between decentralization and traditional business models. Morales says, “The question is, is that theory of decentralization ever gonna take over centralization? The jury is completely out for me on that one.”

Challenges and Opportunities for Web3 Startups

Morales notes the resource gap and bureaucracy Web3 startups face with traditional banks. She states, “Many times to get that contract signed, it has to go through how many layers of checks and approvals. And compliance and so on on the big companies and the little companies.”

This underscores the need for Web3 startups to articulate the problems they’re solving. And to prove tangible value to potential partners in the financial sector.

Role of Accelerators in Nurturing Web3 Innovation

Morales shares details about Outlier Ventures’ role as a Web3-focused accelerator. She explains, “We’ve probably accelerated around over 200 companies at this point. Helping them in their earliest stages of growth.” The accelerator provides support in different areas, like legal, marketing, finance, and token design. The aim is to build a robust ecosystem for Web3 startups.

Future of NFTs and Digital Collectables

Morales stays optimistic about NFTs and digital collectables, despite recent market changes. She notes, “There’s something powerful in digital collectables in a lot of use around gaming and media and sports. And it’s these kinds of consumer-focused applications where I think a lot of Web3 solutions can make sense.”

Morales recognizes the recent downturn in NFTs. Yet, she believes industries like fashion, gaming, and media will embrace them again. This is due to their focus on innovation. This perspective offers a counterpoint to the current narrative surrounding NFTs. It suggests that we may see a resurgence in this space as more practical use cases emerge.

Real-World Assets, Bitcoin and the Future of Tokenization

Discussing emerging trends, Morales highlights the potential of tokenizing real-world assets (RWA). She explains, “That is about being able to tokenize most anything. It doesn’t have to be a traditional security in the stock or bond sense of things.” This area represents a promising intersection between traditional finance and Web3 technologies.

The Big Ideas

  1. Morales emphasizes the importance of data ownership and privacy in the Web3 ecosystem. She states, “I do think when it comes to data and data ownership and privacy and individual rights, this idea that humans and individuals should be owning their data. And not giving it away to centralized entities is becoming more and more and more important.”
  2. There is tension between centralization and decentralization (such as with Bitcoin) in the Web3 space. Morales notes, “The question is, is that theory of decentralization ever gonna take over centralization? The jury is completely out for me on that one.” This observation highlights a fundamental challenge in the Web3 ecosystem. It is balancing the ideals of decentralization with practical implementation and human nature.
  3. Web3 startups face significant hurdles when trying to collaborate with traditional financial institutions. These challenges stem from mismatches in resources, bureaucracy, and operational timelines. Morales explains, “Many times to get that contract signed, it has to go through how many layers of checks. And you’re just hoping that they don’t run out of money to get something done to prove that you can do this.”
  4.  Accelerators are essential for nurturing Web3 innovation by supporting early-stage startups. This highlights the importance of investing in startups. Morales explains the role of Outlier Ventures in this ecosystem. She says, “We’ve probably accelerated around over 200 companies at this point, helping them in their earliest stages of growth. So these are pre-seed or seed stage companies.”
  5. Tokenization of real-world assets represents a promising area for convergence between Web3 and traditional finance. Morales states, “That is around being able to tokenize most anything. It doesn’t have to be a traditional security in the stock or bond sense of things.”

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